House prices in Auckland continue to soar with prices up more than 10 per cent in the past year and sales by auction heading through the roof.
Latest data from the Real Estate Institute of New Zealand (REINZ) shows the national median house price reached a new record of $389,000 in December, up almost 10 per cent from the previous year.
REINZ chief executive Helen O'Sullivan said the Auckland and Canterbury/Westland regions were the key drivers last year, accounting for more than half the country's real estate activity.
''The strength of these two regions is starting to spill over into other parts of the country with Central Otago Lakes and Wellington both seeing more invigorated markets, particularly in terms of sales volumes. ''
The median Auckland price of $535,000 was up more than 10 per cent from December 2011.
All regions recorded falls in sales volume during December, as is normal during the shortened trading month.
But 74,000 houses were sold over the course of the year, marking a 21 per cent rise from 2011 and the highest annual total since 2007.
Despite the strong growth in sales volume, the number of sales relative to total dwellings remained below the long-run average and well behind the 2003 peak, when more than 120,000 properties were sold.
O'Sullivan said the trend was evidence of the ongoing tightness in some parts of market where demand was increasing, but supply remained constrained.
Sales by auction grew by 87 per cent in Auckland for 2012 and by one third across the rest of the country.
- © Fairfax NZ News
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